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'Expensive Credit Covers Bank's Losses' |
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(11th August 2008)
High street banks have covered huge losses in their global businesses by increasing rates on mortgages and credit cards sold to their UK customers, according to the Telegraph.
The newspaper reports that leading retail banks have increased first-quarter profits by £500 million when compared with last year's figures, despite losing billions of pounds in international investments.
Director of the independent mortgage broker Savills Private Finance Melanie Bien told the Telegraph: "It was increasingly difficult to make a profit on mortgages because of the cut-throat competition."
"[But] now lenders are in the driving seat and able to improve margins and profits while borrowers struggle to adjust to higher rates," she added.
According to the Nationwide House Price Index, property prices continued falling in July and the total number of housing transactions plummeted by a third when compared to figures released in July 2007.
Mortgage lender Nationwide blamed rising food and fuel prices for the drop in activity in the housing market, not increased mortgage costs.
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News brought to you by Start Again Finance, specialists in bad credit mortgage advice, loans, credit cards, savings and insurance |
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